Roku Inc., the streaming video device maker, said Wednesday that it has secured a fresh $60 million round of funding from media giant Hearst Corp. and an unnamed institutional investor joined existing backers such as News Corp. and its subsidiary British Sky Broadcasting, according to reports.
Roku's streaming service offers an alternative to broadcast, cable and satellite television and first supported Netflix viewing five years ago. The funding comes as the battle for the living room heats up and traditional pay TV subscriptions stagnate in the U.S.
Previous strategic investors, including BSkyB, News Corp. and Dish, are back as well (News Corp. also owns this website). Roku has now raised $130 million to date, according to CEO Anthony Wood, All Things Digital notes.
Roku said the new funds will "fuel Roku's growth which has accelerated in the last year," noting that it's working with two dozen original equipment manufacturers that are making north of 3.5 million Roku-ready devices, "predominately TVs," that will be on retail shelves by year-end. Those Roku-ready devices are being made to access the streamer's platform via the Roku Streaming Stick, a thumb drive-like unit that connects to TVs via a specialized HDMI link and retails for $99.99.
"Roku has a significant portfolio of investment and strategic partners with very successful global businesses. Their recognition of our brand success and belief in the Roku platform is a tremendous endorsement of our potential to shape the future television experience," said Roku founder and chief executive officer Anthony Wood, in a statement.
In March, the company announced its latest iteration, Roku 3, the first major upgrade to the user interface since the original player was introduced in 2008.
